Sell stock and buy real estate?
My spouse works in tech that recently went IPO with a decent company stock portfolio. We bought a house in 2021 with some of that as down payment and noticed in the past 2 years that whatever money we put in our house was protected as the house value did not go down. But our stock portfolio was wiped out by 50%. Is it worth keeping vested stock or should we liquidate at each vesting and re-invest in real estate? What are people doing with their company stocks? TC: beans
Selling at vest is a question for you. Think about it as you getting the same amount in cash and if you would buy your company stock at that time at that price with that cash. If the answer is no, sell it. If the answer is yes, you can keep it, but my recommendation is still to diversify some at least. So that in case the stock tanks you dont get impacted as much.
It’s always a smart decision to distribute your wealth but don’t park everything in housing.
"What could go wrong, housing only goes up" - Evergrande CEO
Another alternative is to sell at vest and then invest in VOO.
Sell all and VOO VGT QQQ SCHD allocate as per your risk tolerance.
How is your portfolio down so much? That’s just probably poor choice in individual stocks. If you invest in an index you are probably fairly close to flat as well
Majority of tech that boomed during covid are down 70%. Big guys recovered ok, but mid level and below still are very low.
Based on the description, OP is not even picking individual stocks. They just didn't sell the vested stocks form their employer.
Do you know real estate a bit? Do you love it? Then yes. Otherwise, no. Real estate is a hard way to make easy money.
It also had some crazy valuation increase the past 10-15 years due to near 0 interest rates and it’s gonna take a while for things to settle with the new norm with higher interest rates. Right now we’re at historical avg interest rates and possibly heading north still. I’m not a doomer but if people think real estate is a solid bet rn that’s delusional a 500k loan at 2-3% interest is significantly different at 6-7%.
@Pinterest you think real estate is going to go down? Historically low inventory and once the rates go back down there's going to be a flood of buyers so I think it's going to go up
When you say that the house did not go down, did you take into account: taxes, hoa, upkeep (money and time), money going towards interest if you have a mortgage, and all the selling fees and cost you would have pay if you were to sell it? I agree with what others said that if you are wiped 50% in stocks it's probably because you have large holds on a few individual stocks. Diversify that! Maybe you could diversify part of it in real estate, but don't overdo that (you may already have more than enough diversified into real estate with your home)
You should share your portfolio for better feedback. If you want to safeguard your current funds and have determined that your current portfolio is doomed in the foreseeable future, maybe move the stocks to ETF funds. Real estate can be tricky too and based on where you are looking to invest, you may end up purchasing overpriced assets.
It's also a lot of work to maintain re portfolio even if you have a management firm helping you out
Yes, Google but going by the 50% evaporation- doesn’t look like there is a lot of RE assets to buy, especially in an overpriced market.
I was planning on doing the opposite
What do you mean?
Selling my rental and investing the proceeds in market
I held apple stock instead of using it for real estate. Turned out to be very good for me.
I’ve been riding the waves. Wondering what others are doing as well.